BUSINESS, INNOVATION AND SKILLS

Pre-Council EU Foreign Affairs Council

Vincent Cable: The EU Foreign Affairs Council (Trade) will take place in Luxembourg on 14 June 2013. I shall represent the UK on all the issues on the agenda.
	The substantive items on 14 June will be: the EU negotiating mandate for the EU-US transatlantic trade and investment partnership agreement; the state of play of negotiations on the EU-Canada free trade agreement, known as the comprehensive economic and trade agreement (CETA); and the prospects for a successful agreement on trade facilitation at the ninth WTO ministerial conference (MC9) in December.
	Two AOB items will also be discussed: EU work with the Bangladeshi authorities and the International Labour Organisation following the tragic collapse of a garment factory in Dhaka; and political agreement on the two trade omnibus dossiers which bring EU decision making into line with the Lisbon treaty.

TREASURY

Double Taxation Convention and Protocol (Netherlands)

David Gauke: A double taxation convention and protocol with respect to bank taxes with the Netherlands was signed on 12 June 2013. The text of the convention and protocol has been deposited in the Libraries of both Houses and will be made available on HM Revenue and Customs’ website. The text will be annexed as a schedule to a Treasury Order and laid before the House of Commons in due course.
	A protocol amending the double taxation convention with respect to taxes on income and on capital gains with the Netherlands was also signed on 12 June 2013. The text of the protocol has been deposited in the Libraries of both Houses and will be made available on HM Revenue and Customs’ website. The text will be scheduled to a draft Order in Council and laid before the House of Commons in due course.

Royal Bank of Scotland

George Osborne: The Royal Bank of Scotland (RBS) yesterday announced that Stephen Hester will be stepping down as chief executive officer (CEO) later this year.
	When Stephen Hester took on the job at RBS in 2008 it was on the edge of collapse. RBS today is safer, stronger and better able to support its customers. I commend Stephen Hester for everything he has done to make this turnaround possible.
	Having brought RBS back from the brink, now is the time to move on from the rescue phase to focus on RBS being a UK bank that provides greater support to the British economy, helping businesses and job creation here, and which can return to the private sector in a way that ensures value for the taxpayer.

ENERGY AND CLIMATE CHANGE

Energy Council

Michael Fallon: The United Kingdom was represented by Shan Morgan, Deputy Permanent Representative to the EU, at the EU Energy Council in Luxembourg on 7 June 2013. Discussion centred on the internal energy market, energy technology and innovation, biofuels and external energy relations.
	The presidency reported on progress on the proposed directive relating to the quality of petrol and diesel fuels and on the promotion of renewable energy. The Energy Commissioner noted that the Commission was flexible on its proposal to cap at 5% the contribution of so-called first generation—or land-based—biofuels to the 10% renewable fuel target for 2020. The Irish presidency concluded that discussions would continue in a final meeting of the indirect land use change ad hoc group under its presidency.
	Responding to the Commission’s 2012 communication and taking account of the outcome of the 22 May European Council, the Council adopted conclusions on “Making the internal energy market work”. The Commission set out some concerns over capacity mechanisms, arguing that if 28 member states each put in place expensive arrangements to have reserve generating capacity in times of shortage, then this would both be expensive and undermine the single market.
	In a debate on the Commission communication on “Energy technologies and innovation”, Ministers agreed on the need to prioritise research and innovation, in order to bring down the cost of new technologies and accelerate their entry to the market; and endorsed Commission proposals to update the strategy energy technology plan and develop an integrated road map by the end of 2013. A number of member states, including the UK, called for more detail on how national and EU funding mechanisms would be integrated. Other member states underlined that any new reporting system should avoid the excessive administrative burdens associated with the strategic energy technologies information system (SETIS).
	On energy external relations, the Energy Commissioner reported on developments on gas import pipelines, underlining that the EU’s energy single market rules would apply to all import pipelines into the EU and that member states’ bilateral contracts with neighbouring third countries should embody the principles of
	transparency and fair competition. On the southern corridor, it was noted that Georgia may soon join the energy community treaty and that Azerbaijan’s President would visit Brussels on 21 June for discussions concerning the preferred pipeline option. The Commission announced two conferences towards the end of the year, including one on eastern Mediterranean gas.
	Finally, Lithuania gave a presentation of its presidency priorities: completing the internal market and strengthening the external dimension. Lithuania also hoped to make progress with the European Parliament towards an agreement on biofuels, on notification of infrastructure investments and on an expected Commission proposal on sustainability criteria for biomass.

ENVIRONMENT FOOD AND RURAL AFFAIRS

Correction to PQ Answer 154587

Richard Benyon: I responded to a written PQ from the hon. Member for Vale of Clwyd (Chris Ruane) on 20 May 2013 asking which coastal towns have benefited from flood defences under the coastal change pathfinders scheme, and how much has been spent on coastal defences in each such community since the termination of that scheme.
	My response included a table detailing spend by authority. This table has now been updated by clarifying the figure given for Waveney district council.
	
		
			 Local Authority Amount spent 
			 Chichester District Council £450,000 
			 Dorset County Council £0 
			 Sefton Metropolitan Council £0 
			 East Riding of Yorkshire Council £1,200,000 
			 East Sussex County Council £294,997 
			 Great Yarmouth Borough Council £26,059,700 with £15,760,200 expected in 13/14 
			 Somerset County Council £0 
			 Hampshire County Council £254,000 
			 South Hams District Council £0 
			 Hastings Borough Council £115,625 
			 Lincolnshire County Council £14,111,100 with £7,720,000 expected in 13/14 
			 Tendring District Council £2,817,800 with £525,000 expected in 13/14 
			 North Norfolk District Council £410,500 with £3,100,000 expected in 13/14 
			 Scarborough Borough Council £1,000,000 
			 Waveney District Council £10,000 
		
	
	The total expenditure in Waveney was £10,000. I originally gave a figure of £101, which was the Environment Agency contribution to the project. The remainder of the funding came from their project partners. Our partnership funding approach clarifies what level of investment communities can expect so that they can secure funding from other sources to allow schemes to go ahead.
	The funding was used as part of the Southwold Easton Bavents relocation project.

FOREIGN AND COMMONWEALTH AFFAIRS

Conflict Resources

William Hague: I, together with my right hon. Friends the Secretary of State for International Development, the Member for Putney (Justine Greening), and the Secretary of State for Defence, the Member for Runnymede and Weybridge (Mr Hammond), wish to update the House about our plans for funding conflict prevention, stabilisation and peacekeeping activities through the conflict resources settlement over the next two financial years. Our written ministerial statement of 19 November 2012, Official Report, column 19WS, provided details of planned allocations, covering both the conflict pool and the peacekeeping budget, for the 2010 spending round period. This statement updates the House on adjustments made to these planned allocations.
	We have now reviewed conflict pool allocations for FY2013/14 and FY14/15. We intend that this funding continue to be spent within the strategic context set out by the building stability overseas strategy (BSOS). Delivering this strategy is an important priority for the Government. Enhancing genuine stability by supporting the development of societies with strong and legitimate institutions which can manage tensions peacefully is central to our national interests.
	The size of the settlement increased to £664 million in FY 13/14, with the peacekeeping budget continuing to have first call on available resources. Taking into account the significant savings we secured at the UN in FY12/13, in particular in the tri-annual negotiations on the scale of contributions, £435 million has been set aside for peacekeeping budget requirements. Based on this we have allocated £229 million to the conflict pool in FY 13/14. This represents an increase of £20 million over the £209 million allocated in FY 12/13.
	For FY14/15 we currently have less certainty about peacekeeping demands. We have provisionally estimated a peacekeeping top-up of £85 million from the conflict pool, giving a projected available allocation of £224 million for conflict pool programmes. Once the position is clearer, and further negotiations on UK contributions to UN peacekeeping have taken place, we will update these figures and would expect to be able to allocate some additional funding to the conflict pool for the FY 14/15. The table below shows the details.
	
		
			 Table 1: SR10 Total Conflict Resources (£ million) 
			 Year FY11/12 FY12/13 FY13/14 FY14/15 
			 Total allocation 630 644 664 683 
			 Peacekeeping agreed claim on the Treasury reserve 374 374 374 374 
			 Peacekeeping top up from pool 76 61 61 85 
			 Conflict pool 180 209 229 224 
		
	
	The table below shows confirmed conflict pool allocations for individual programmes for FY 13/14 and indicative allocations for FY14/15.
	
		
			 Table 2: Conflict Pool Allocations 
			 Programme FY 13/14 (£m) FY 14/15 (£m) 
			 Afghanistan 45 25 
			 Middle east and north Africa 39 35 
			 Africa 51.5 45 
			 Wider Europe 36 36 
			 South Asia 20 23 
			 Strengthening alliances and partnerships 10 13.5 
			 Stabilising unit 10.8 10.6 
			 Early action facility 20 20 
			 Unallocated - 15.9 
			 Total 232.3* 224 
			 * includes over £3.3 million over allocation 
		
	
	The middle east and north Africa programme will be increased substantially (from £23.7 million in FY12/13) to provide a major uplift for work on the crisis in Syria and its regional consequences, as well as further funding for Libya and Egypt. We will continue our commitments in Lebanon, the Occupied Palestinian Territories and Iraq.
	There will also be an increased allocation for the Africa programme, mostly geared towards building momentum on security, stabilisation and the political process in Somalia. There will also be increased resource for Mali and Nigeria.
	Funding for Afghanistan remains significant but is being reduced in FY13/14 as conflict pool-funded activity in Helmand decreases ahead of transition in 2014.
	An increase in the south Asia programme will largely focus on Pakistan, including relations between Afghanistan and Pakistan. The programme will continue other regional commitments including in Nepal and Sri Lanka.
	The wider Europe programme will continue to cover the costs of UK personnel in the UN peacekeeping mission in Cyprus and our commitments to EU peacekeeping and security sector reform missions in the western Balkans.
	The thematic strengthening alliances and partnerships programme are receiving an increased allocation to support UN work on peacekeeping and protection issues, and for new activity on the UK-led preventing sexual violence initiative.
	The conflict pool will continue to provide funding for the tri-departmental stabilisation unit. The allocation includes a small increase to cover the costs of the unit’s physical relocation to the Foreign and Commonwealth Office later in 2013.
	A total of £20 million of conflict pool funding will again be ring-fenced for an early action facility (EAF) to respond to unforeseen demands in year without disrupting planned programming. In FY 12/13 the EAF was used for work in Syria, Libya, Somalia and Mali/the Sahel.
	Allocations for FY14/15 remain partly indicative at this stage. They are in line with those previously agreed by the National Security Council and reported to Parliament in November 2012, with increases in line with the FY13/14 trends indicated above. In order to retain flexibility to meet priority new demands, we have retained £15.9 million as unallocated funding at this stage. As indicated above, the overall conflict pool total is based on cautious assumptions of peacekeeping budget demands and is expected to increase.

HEALTH

Health Select Committee Report (Public Expenditure)

Jeremy Hunt: I have today laid before Parliament “Government Response to the House of Commons Health Select Committee report into Public Expenditure on Health and Care Services: Eleventh Report of Session 2012-13”, Cm 8624.
	Even with this Government’s £12.7 billion investment in the NHS and additional £7.2 billion investment in adult social care, I acknowledge that our health and care system is facing enormous pressures from rising demands for its services. Yet both the NHS and local authorities are rising to these challenges, and through a combination of increased efficiency and wiser spending are continuing to deliver high-quality care for their patients and service users.
	However, we do need to go further than just delivering the same service. If we are to meet the needs of our ageing population, the NHS and its partners in social care need to look seriously at how care is being provided, particularly to older patients and those with long-term conditions.
	Our healthcare services need to be more efficient. This does not mean cutting services or finding short-term fixes—it means getting better services to people in a timely way. The number of people over 85 is set to double in coming decades. Doing things differently is the only way we will meet people’s expectations within a constrained budget.
	Since April—under this Government’s reforms—GPs, local authorities and hospitals are now working together to make sure that services are integrated and that more is provided in the community and closer to patients’ homes.

HOME DEPARTMENT

Justice and Home Affairs Post Council Statement

Theresa May: The Justice and Home Affairs (JHA) Council was held on 6 and 7 June in Luxembourg. The Lord Chancellor and Secretary of State for Justice, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), and I attended on behalf of the United Kingdom.
	The Council began with the Justice day. The presidency invited member states to give general support to part of the proposed regulation on data protection, while at the same time stressing that nothing would be formally agreed until agreement had been reached on the entire proposal. There was a detailed discussion during which a number of member states including the UK stressed that further work was needed, that clarity was required on where exemptions would apply, and supporting a properly-defined “risk-based” approach. The UK stressed the need to take account of the effect on small and medium-sized enterprises as well as major ones. A number of states, including the UK, argued that it was too soon
	to accept the presidency’s text and the level of “general support” called for by the presidency was not forthcoming. The relevant text will be further discussed in future negotiations.
	The presidency secured a general approach on the proposed directive on protection of the financial interests of the Union by criminal law. The Council agreed to a number of amendments to the Commission’s proposal, including excluding VAT from scope and deleting the requirement for member states to set minimum terms of imprisonment. The presidency made it clear that the general approach was conditional on the text being based on article 83(2) rather than article 325 of the treaty on the functioning of the European Union. This was an outcome which the UK supported.
	The presidency presented a paper concerning the proposed regulation on a European account preservation order (EAPO), highlighting the importance of striking an appropriate balance between the interests of the creditor and the debtor—the concern that had led to the UK deciding not to opt in. Discussions covered the possible liability of a creditor who had suffered loss as a result of a wrongly issued EAPO, the possibility of the creditor being required to provide security, and the issue of ex parte proceedings.
	Over lunch Ministers discussed the charter of fundamental rights, and rejected calls for work designed to increase its visibility.
	The Council considered the proposed regulation on insolvency. All member states which spoke, including the UK, supported the proposal. The UK pressed for speed, highlighting the benefits of the proposed measure for the internal market. Various delegations intervened to raise points of detail.
	The Commission presented its new proposal on acceptance of certain public documents as one which would reduce regulatory procedural burdens and enable savings of £255 million per year.
	The Council adopted conclusions on fundamental rights, rule of law and the charter of fundamental rights. The Commission presented its annual report on the charter and made reference to the justice scoreboard. The UK stressed that the justice scoreboard had not been accepted by the Council and had no legal base; moreover; rule of law work at EU level should focus on an informal exchange of views—there was no power for the Commission in respect of member states’ constitutions.
	A state of play report was given on EU accession and the presidency noted the progress made.
	The Council adopted the EU action plan drugs strategy for 2013-17, and received a presentation by the director of the European monitoring centre for drugs and drugs addiction.
	The Lithuanian Minister made a presentation of his country’s justice priorities for their forthcoming presidency. They included the common European sales law and data protection, and they would seek general approaches on the account preservation order and the insolvency regulation. They would also take forward proposals on counterfeiting and protection of the Union’s financial interests.
	The second day began in mixed committee with Norway, Iceland, Liechtenstein and Switzerland (non-EU Schengen States) where Ministers welcomed the deal reached in trilogue on the Schengen evaluation mechanism (SEM) and Schengen borders code (SBC). The package retains the member state peer-to-peer evaluation system and control over reintroduction of temporary internal border controls, with a greater role for the Commission in the implementation of the evaluation system and increased European Parliament access to documents. The presidency also welcomed the third biannual Schengen governance report. The Commission noted that the pressure at the Greece-Turkey land border had decreased, but warned member states to remain vigilant for displacement pressure.
	The Greek Minister then presented an overview of progress made on the Greek national action plan on asylum and migration (GNAP). The Minister highlighted what he saw as key achievements, the greatest being the full operation of the new asylum service, as well as the appointment of a single co-ordinator to administer the structural funds. He noted that the focus would now be on raising the standards by opening new reception centres, introducing mobile screening units and through quicker processing. The Greek Minister thanked the UK for its financial support for returns from Greece. The Commission welcomed Greece’s progress, but remained concerned about conditions in some detention centres, and reminded Greece that, given continuing under spending of EU funds, increasing absorption capacity should be a focus for the Greek authorities.
	The main Council started with a discussion on foreign fighters and the potential threat they pose if and when they return to Europe. Member states expressed concern about the matter and I agreed to take forward work with a small number of affected member states. The EU counter-terrorism co-ordinator (Gilles de Kerchove) provided an overview of his recent paper on foreign fighters and urged Ministers to take immediate action to address the potential threat to EU internal security that jihadists travelling to Syria posed. The UK highlighted the importance in supporting those who wanted to do all they can to support the humanitarian effort, while deterring them from actually travelling out to Syria where they are at risk of putting themselves and innocent Syrians in danger. I expressed my disappointment that the European Parliament had failed to adopt its report on the EU PNR directive. The external action service (Maciej Popowski) cautioned against viewing all those who travelled to Syria as terrorists and reminded member states of the need also to address counter-proliferation. The Commission declared its intention to carry out a risk assessment on foreign fighters and enhance the work of the radicalisation awareness network. The presidency concluded that there was broad support for the ideas in the CTC’s paper which would be taken forward at working level. The UK also provided a brief update on the recent attack in Woolwich and thanked colleagues for their messages of condolence.
	Next the presidency sought views on the Commission’s proposal for a new Europol regulation focusing on the proposed merger of Europol and the European Police College (CEPOL) and strengthened obligations on member states to provide Europol with information. There was a clear consensus against the merger despite the Commission
	highlighting that the Council had a duty to follow the common approach on EU decentralised agencies and make efficiency and cost savings. The UK spoke out against the merger, agreeing with 18 other member states that it would have a negative impact on both training and operational activities and that the Commission’s own calculations had failed to demonstrate cost savings. The presidency concluded that work would begin at expert level on the assumption that the merger would not be included in the regulation.
	On the proposed obligation to share information, a number of member states expressed opposition to the Commission’s proposals. The UK acknowledged the importance of information sharing but said we could not accept any proposal that made national law enforcement agencies accountable to Europol, or that would lead to member states losing control over decisions on what data they share and with whom. Increased obligations could also result in member states overwhelming Europol with information in order to comply with the regulation, to the detriment of the quality of the information. The UK also raised concerns over obligations to carry out domestic investigations at the request of Europol. No other member states intervened on this point. Discussion will move to expert level.
	There was an update on the common European asylum system (CEAS). After four years of negotiations, three of the four instruments were adopted by the Council, and the final element (Eurodac regulation) will be adopted at the June Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) Council.
	There was a discussion on the protection of refugees from Syria. The European external action service was pleased to announce that President Barroso had secured additional aid for Syria, and hoped that the Geneva II process, the international peace conference held in Geneva that discusses the conflict in Syria, would make progress in the medium term. According to the European asylum support office, Syria remained in the top three asylum intake for the EU member states and anticipated that this trend would remain. The Commission welcomed the increase in humanitarian aid and noted that the UNHCR would shortly call for the humanitarian admission of 10,000 refugees, with a further 2,000 set aside for resettlement to the EU. The Commissioner welcomed the high recognition rate within the EU, but remained concerned about the divergent practices between member states and the detention of Syrian nationals. The UK noted an increase in Syrian asylum seekers, and pointed to increased humanitarian aid as the most urgent short-term priority for the EU; the UK had pledged £170 million to date. The medium-term priority should be the establishment of the regional protection programme (RPP) to provide support in the regions affected and the UK hoped its place on the steering committee for the programme would be confirmed soon. Finally, the UK welcomed work by the European Asylum Support Office (EASO) to develop an accurate picture of asylum claims and in co-ordination of any special support that would be requited as a result. The presidency noted that this discussion would continue at the Informal Council in July, where the UNHCR would outline further the plans for the admission and resettlement of Syrian nationals.
	In the margins of the Council, the Ministers of Belgium, France, Germany, Italy, the Netherlands, Portugal, Spain, Sweden and the UK signed the mobility partnership with Morocco, alongside Commissioner Malmström and the Moroccan Foreign Affairs Minister, Dr Saad Dine El Otmani.
	Over a working lunch Ministers discussed free movement an issue the UK has been working hard to get the Council to consider. Although there was a divergence of views on how to deal with this issue, all Ministers agreed that free movement was a core right that should be protected and expressed a wish to work together to look at possible abuse of free movement. The UK, supported by a number of other member states, stressed the need to tackle abuse to ensure continued public confidence in the principle, and called for follow-up work in the Council with a report back to JHA Ministers. However, led by the Commission, a number of member states resisted, arguing that the discussion should be led by the Commission with a focus on the evidence of the problem. The presidency asked a Commission-led group to investigate the issue to provide an interim report to the October JHA Council and a final report in December. It was decided that the EPSCO Ministers would also be given the opportunity to feed into the report. The UK thanked the presidency for the discussion and for the recognition that there should be follow up work at EU level and indicated that the UK, Germany and a number of other member states would also be progressing work on ways of dealing with the abuse of free movement.
	Under any other business the presidency reported on work on the Eurosur regulation, regulation 562 (Schengen borders code) and regulation 539 (visa requirements for nationals of non-EU countries). The presidency also provided updates on the three legal migration directives. It called for member states’ flexibility on the files on seasonal workers and intracorporate transferees (ICTs) as they hoped to reach first reading deals. Negotiations for the students and researchers proposal would continue under the Lithuanian presidency. The Commission emphasised the importance of the instruments in making the EU more attractive for companies and highly skilled workers while protecting those who were at risk of exploitation. The UK has not opted in to the proposals on seasonal workers and intracorporate transferees and is considering whether to opt in to the third measure on students and researchers.
	The multi-annual financial framework (MFF) was making good progress, and the presidency hoped to secure the basis of a deal before the end of June. The presidency highlighted that negotiations continued on the asylum and migration fund (AMF) and internal security fund (ISF police). On the former, there were a number of issues that required flexibility from member states but there was agreement on the latter, subject to the actual budget itself.
	The Lithuanian presidency noted that theirs would be the last full term presidency before the European Parliament elections, so there would be a concerted effort to conclude all outstanding negotiations. In addition, Lithuania had put Europol and cyber security high on the agenda and a debate on the latter would be a focus for the Informal Council in July, alongside a review of the Stockholm programme, a discussion on Syria, and
	the annual report on immigration and asylum. The eastern partnership would be a horizontal priority for the presidency, and the Minister noted that the eastern partners would be present at the October JHA Council.
	Finally, the Commission presented its Communication on migration and development in preparation for the forthcoming high-level dialogue; Sweden briefly explained the role of the global forum on migration and development (GFMD) and looked forward to welcoming member states to the meeting in Stockholm next May; Hungary fed back from the recent ministerial meeting in Istanbul on the Budapest process and discussions on the silk routes partnership; and Slovenia provided an update on the Brdo process (intended to strengthen ties with the western Balkans) and the recent informal meeting of Ministers which discussed action to tackle abuse of visa liberalisation and co-operation on combating illegal arms trafficking. The EU-Russia summit on 3-4 June had briefly touched on JHA issues, in particular the visa facilitation agreement (VFA), which the Commission hoped would be signed soon.

Terrorism Prevention and Investigation Measures

Theresa May: Section 19(1) of the Terrorism Prevention and Investigation Measures Act 2011 (the Act) requires the Secretary of State to report to Parliament as soon as reasonably practicable after the end of every relevant three-month period on the exercise of her TPIM powers under the Act during that period.
	The level of information provided will always be subject to slight variations based on operational advice.
	
		
			 TPIM notices in force (as of 31 May 2013) 8 
			 TPIM notices in respect of British citizens (as of 31 May 2013) 8 
			 TPIM notices extended (during the reporting period) 1 
			 TPIM notices revoked (during the reporting period) 1 
			 TPIM notices revived (during the reporting period) 1 
			 Variations made to measures specified in TPIM notices (during the reporting period) 25 
			 Applications to vary measures specified in TPIM notices refused (during the reporting period) 4 
		
	
	During the reporting period one TPIM notice was revoked because the subject was remanded in custody; and one TPIM notice that had been revoked in a previous quarter was revived upon the subject’s release from prison.
	One individual was charged in relation to an offence under section 23 of the Act—contravening a measure specified in a TPIM notice without reasonable excuse—during the period.
	EWHC 843 (Admin), handed down on 12 April 2013, the High Court upheld the Secretary of State’s decision not to vary four of the measures imposed under CF’s TPIM notice; the Secretary of State was directed to make an amendment to one other measure. This judgment is available at: http://www.bailii.org.
	The TPIM review group (TRG) keeps every TPIM notice under regular and formal review. The TRG has not met during this reporting period.